Read to children and the World Bank will be their oyster, says Labor

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Labor's campaign to encourage parents to read to their children is sound economic policy and has the imprimatur of the World Bank, says the shadow treasurer, Simon Crean.

In a speech to the Sydney Institute last night, he said the latest economic research backs up the priority placed by the Opposition Leader, Mark Latham, in investing in early childhood education.

"The World Bank gives us five good reasons why we should invest in young children," he said.

"First, it builds human resources in a proven way. Second, it generates higher economic returns and reduces later social costs. Third, it achieves greater social equity. Fourth, it increases the efficiency of other investments. And fifth, it helps families as well as children."

Mr Crean said the Prime Minster and Treasurer had missed the point with their criticisms of Labor's emphasis on reading to children. "While John Howard and Peter Costello have both ridiculed it as 'reading to kids', Australians are getting the real message about early intervention," he said.

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"Australian families intuitively understand the importance of early intervention in maximising the growth and development of their children and there is a growing body of economic and social literature which draws attention to the importance of early education and preventative health."

Mr Crean focused on the long-term economic goals of a Labor government, especially the need to invest in "human capital", especially improving skill in the workforce. He also emphasised Labor's pledge to manage the federal budget carefully.

The Finance Minister, Nick Minchin, stepped up the Government's attack on Labor's credibility, questioning Labor's approach in a letter to the accounting firm that Labor has asked to check its policy costs.

Senator Minchin told PricewaterhouseCoopers that he is concerned Labor has a "dual track" approach to the disclosure of policy costings, with one policy for the voters and one for the auditors.

"In several cases, the Labor Party appears to be making significant promises to the electorate at large, but then scaling down the promise for the purposes of submitting them for costing," he said.

The eight-page letter questions the credibility of funding for eight Labor policies, including changes to Medicare and higher education.